Securities litigation refers to lawsuits filed by persons or entities who bought or sold publicly-traded securities (tradable financial assets such as stocks and bonds). These lawsuits are often filed as class actions, with one or a few plaintiffs purporting to represent all persons and entities who bought or sold a company’s stocks, bonds, or other securities during a certain time period (class period). Securities lawsuits are typically based on violations of the securities laws, and allege misleading statements or omissions of material facts.

In Montana, securities litigation is governed by both federal and state laws. Federal laws such as the Securities Act of 1933 and the Securities Exchange Act of 1934 provide the basis for most securities litigation, addressing issues of fraud and misrepresentation in the sale of securities. These laws allow investors to file lawsuits if they have been misled by false statements or omissions of material facts related to publicly-traded securities. The Montana Securities Act also provides regulations at the state level, mirroring many of the protections found in federal law. Class action lawsuits are a common form of securities litigation, where a group of plaintiffs with a common claim against a company are represented collectively by a lead plaintiff or plaintiffs. These cases often involve complex financial matters and require the expertise of an attorney with experience in securities law. It is important for investors in Montana to seek legal advice if they believe they have been the victim of securities fraud or misrepresentation.